Small Cap Feast

Small Cap Feast – 11 February 2020

Set Menu AIM:

Total number of AIM Companies (Incl Susp):

Total number of AIM Companies trading: *
* As at

Set Menu NEX Growth:

Total number of NEX Growth Market Companies (Incl Susp): *

Total number of NEX Growth Market Companies trading: *
* As at

Set Menu Standard List:

Total number of Standard List Companies (Incl Susp): *

Total number of Standard List Companies trading: *
* As at

Dish of the Day:

No Joiners Today

 

Off the Menu:

No Leavers Today

 

Dish of the Day:

Off the Menu:

What’s Cooking in the IPO Kitchen?

AIM

Intention to float by Gemfields Group. No Capital Raise. Currently listed on JSE. (GML:JNB) at circa £122m.  The Group’s key producing assets, the Kagem emerald mine in Zambia  (believed to be the world’s single largest producing emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered ruby deposits in the world), are both expected to have long mine-lives with potential for expansion. Also owns the  Faberge brand. Due Valentines Day 2020.

Main Market (Standard List)

The Proof Of Trust has announced its intention to list on the Standard Market.  The Blockchain based business, owns patents to a protocol which facilitates dispute resolution based upon smart contract disputes.  Transaction details TBC.

Main Market (Premium)

Ninety One –proposed demerger and public listing of  Investec’s  global asset management business on LSE and JSE. 30 Sep 2019 AUM £121bn. Sale of existing shares. Expected free float of >60%. Due 16 march.

Cabot Square—Closed ended investment fund focussed on alternative assets and asset manager. Looking to raise £200m.  Will target investment opportunities that are expected to generate an attractive risk adjusted return and that can also make a positive ESG impact by focusing on some of the biggest challenges facing societies and economies.  Due 14 Feb.

The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m.   Due 28 February.

Investment firm Nippon Active Value fund is seeking to raise up to £200m at an issue price of 100p per share via an IPO.   The company aims to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn.   First day of dealings expected early February.

NEX Exchange

Zapp Scooters, a developer and manufacturer of electric two-wheeled vehicles announced its intention to IPO on the NEX Exchange Growth Market.  The Company intends to raise up to £3.5m. Admission is expected to occur on NEX in February 2020.

 

Breakfast Buffet

PowerHouse Energy (PHE.L) 0.875p £17.7m

The UK technology company pioneering hydrogen production from waste plastic, is pleased to announce that it has entered into a supplemental collaboration agreement with Peel Environmental which aims to accelerate the development of the Protos Energy Park and four further DMG® sites in the UK.

The Supplemental Agreement allows Peel to act as the developer of Protos and four further DMG® sites in the UK pending finalising the proposed acquisition of W2T by PowerHouse, with W2T relinquishing its entitlement to UK exclusivity for the technology and development rights of PowerHouse’s DMG® technology.

The Supplemental Agreement is intended to prevent any delays in the development of Protos and four further DMG® sites in the UK which have been identified as the most likely to be developed first.  The remaining six sites under the Collaboration Contract remain unaffected by the Supplemental Agreement, however the technology and development rights will all revert to PowerHouse on completion of the proposed acquisition of W2T.

 

Angle (AGL.L) 73p £126m

The liquid biopsy company, is announced that a customer, the Edith Cowan University in Perth, Western Australia has published results of research into the use of ANGLE’s Parsortix® system with melanoma patients. 

The research shows that the Parsortix system can be used to investigate the heterogeneity of the cancer allowing full molecular analysis of the cancer.  The researchers believe this opens the potential for liquid biopsy to be used for prognostication (assessing prognosis) and treatment response monitoring in melanoma.

In a pilot study of 28 melanoma patients, those with circulating tumour cells (CTCs) present in their blood, harvested by Parsortix, had significantly shorter overall survival with a hazard ratio of 7.8x meaning that patients with a positive Parsortix CTC score were 7.8x more likely to die during a 60 week follow-up period than those with a negative CTC score.  In clinical use, the stratification of patients into high and low risk groups may allow improved treatment decisions, taking into account disease status. The research also favourably compared results from the Parsortix system with some competing systems.

 

Cora Gold (CORA.L) 6.25p £8.1m

2.61g/t Au over 29m Intercepted at Sanankoro .

The West African focused gold exploration company, announced the first drill results from its campaign, which commenced in November 2019 at its Sanankoro Gold Project Southern Mali.  Drilling mainly targeted deeper oxide and sulphide extensions to the Maiden pit constrained Inferred Mineral Resource of 5.0 million tonnes (Mt) at 1.6 g/t Au for 265,000 ounces of gold.

Highlights:

o  SC241: 2.61 g/t Au over 29m from 82m including;

  • 3.89 g/t Au over 12m in sulphide portion of the hole

o  SC246: 4.2 g/t Au over 7m from 101m including;

  • 8.38 g/t Au over 3m

o  SC248: 2.05 g/t Au over 14m from 61m including;

  • 3.31 g/t Au over 7m

o  SC248: 1.08 g/t Au over 18m from 84m

o  SC250: 1.68 g/t Au over 4m from 137m, hole ended in mineralisation

There is significant scope to increase the open pit Resources with further successful drilling.

 

Gaming Realms (GMR.L) 8.05p £22.9m

The developer and licensor of mobile focused, real money games, announces a trading update for the full year to 31 December 2019.

The Company expects to report FY19 revenue modestly ahead of the Board’s expectations. This encouraging performance has been driven primarily by the Company’s content licensing business, which has continued to go from strength to strength, with eight new licensing agreements added during FY19. Due to this revenue performance and the continuing control of costs, the Company anticipates reporting a FY19 adjusted EBITDA loss of approximately £0.5m. The positive momentum has continued into the start of FY20, with the Company launching its content on the sites of Leo Vegas, the Swedish mobile gaming company, and Buzz Bingo, the online site of one of the UK’s largest owners of land-based bingo halls.  Patrick Southon, CEO, has decided to step down from the Board with immediate effect. The Company’s Non-Executive Chairman, Michael Buckley, will become Executive Chairman until a replacement is found. Michael will be supported in his role by Mark Segal, who has been CFO of the Company for six years.

 

Alien Metals (UFO.L) 0.185p £2.5m

Update on the Company’s Donovan 2, copper-gold project. Further to the 30 January 2020 announcement, the Company has now commissioned the IP survey to generate high-priority drill targets.

Highlights:

–      The Donovan 2 Copper-Gold project contains a prospective Volcanic Massive Sulphide (‘VMS’) target, identified by previous sampling and mapping programmes

–      A Ground Magnetic Induced Polarisation (IP) survey over the VMS target is being conducted in order to generate high-priority drill targets

–      Results expected during Q1 2020

–      Next stage of work on Donovan 2 would, subject to additional funding being available, entail drilling of priority targets identified by the survey

 

OPG Power Ventures (OPG.L) 16.75p £67m

Trading update for Nine Months of FY20

 Summary

 For the nine months to 31 December 2019:

  • Total generation of 2.09 billion units (2.15 billion units for nine months FY19);
  • Plant Load Factor (“PLF”) at Chennai was 77% (79% for nine months FY19);
  • Average tariff for nine months FY20 was Rs 5.67 (Rs 5.33 for nine months FY 19);
  • £13.3m term loan principal repayment, representing 3.3 pence per share added in value to shareholders’ equity;
  • Gross debt reduced by 22 per cent to £62.5m (£80.4m at 31 March 2019);
  • FY19 full year scrip dividend of 0.6p per share (FY18: 1p per share) paid in January 2020.

 

Smartspace Software (SMRT.L) 32p £8.8m

 The leading provider of ‘Integrated Space Management Software’ for smart buildings, commercial spaces and hospitality, announced a new channel for the sale of its software on a SaaS basis through its partnership with Evoko, the market leading manufacturer of meeting room panels.

Evoko has today announced the launch of Naso, its next generation meeting room panel. Naso will be showcased to Evoko partners from around the globe attending the ISE trade show in Amsterdam.

As well as offering enhanced meeting room functionality built into the new Naso panel, Evoko will offer integrated software on a subscription basis enabling users to manage bookings via Microsoft Outlook and a new Naso App.

SmartSpace has worked with Evoko as its exclusive software partner to create the Naso software suite and its share of the revenues expected to be generated from the sale of Naso panels and associated software subscriptions helps support the Group’s expectations for the 2021 financial year.

 

Diurnal Group (DNL.L) 25p £21.7m

 HY Dec 19 results.

Strong revenue performance for Alkindi® ahead of further country launches in Europe, with operating losses reduced by 53%. Two major regulatory filings completed during the Period.

Alkindi® revenues of £1.1m, representing 516% year-on-year growth. Operating loss of £4.6m, a reduction of 53% year-on-year reflecting increased revenues and decreased investment in clinical development expenses. Held-to-maturity financial assets, cash and cash equivalents of £4.6m  In the US, Diurnal has received strong interest in Alkindi® and Chronocort® and will continue to progress licensing discussions.  Early stage pipeline progress continues; positive oral native testosterone clinical trial results. Diurnal is currently assessing the regulatory path for registration of DITEST™ in the key US market in order to determine the optimum development pathway, whether in-house or in collaboration with a partner.

 

Pressure Tech (PRES.L) 142.5p £26.5m

Notes the announcement by Greenlane Renewables Inc.  regarding its overnight marketed underwritten public offering. The proceeds of the proposed Offering are expected to be used for various purposes, including payment to Pressure Technologies against its outstanding promissory note.   There can be no assurance as to whether or when the Offering will be completed, or as to the actual size or terms of the Offering

 

Amiad Water Systems (AFS.L) 231p £54.5m

The producer of water treatment and filtration solutions, has received the Green Economy Mark by the London Stock Exchange (LSE) in recognition of its contribution to the global green economy. The recipients of the Green Economy Mark stand to benefit from becoming more visible and able to attract green or climate-aware investors and capital.  

Head Chef:

Derren Nathan
0203 764 2344
derren.nathan@hybridan.com

*A corporate client of Hybridan LLP

Disclaimer

This document, which does not constitute research, has been issued by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to any such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific person or entity and is not a personal recommendation to any such person or entity. Recipients should reach an individual investment decision, based upon their respective financial objectives and financial resources and, if any doubt, should seek advice from an investment advisor.

The information contained in this document is based on materials and sources that are believed to be reliable; however, such information has not been independently verified and therefore it is not possible to confirm such information as being accurate. This document is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein. No representation or warranty, either express or implied, is made or accepted by Hybridan LLP, its members, officers, employees, agents or associated undertakings in relation to the accuracy, completeness or reliability of the information contained in this document, nor should it be relied upon as such.

The content of this document includes market commentary and other information which we have prepared in relation to the company referred to in this document, which is our broking client. The provision of this document to you constitutes a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of Regulation 600/2014/EU (MIFID II Regulation).

Any and all opinions expressed are current as of the date appearing on this face of this document only. Any and all opinions expressed are subject to change without notice and Hybridan LLP is under no obligation to update the information contained herein. To the fullest extent permitted by law, none of Hybridan LLP, its members, officers, employees, agents or associated undertakings shall have any liability whatsoever for any direct or indirect or consequential loss or damage (including lost profits) arising in any way from use of all or any part of the information in this document.

This document should not be relied upon as being an independent or impartial view of the subject matter and, for the avoidance of doubt, constitutes non-independent research (as such term is defined in the Financial Conduct Authority’s Conduct of Business Sourcebook to reflect the requirements of the MIFID II Regulation and Directive 2014/65/EU (known as MIFID II)). The individuals who prepared this document may be interested in shares in the company concerned and/or other companies within its sector, may be involved in providing other financial services to the company or companies referenced in this document or to other companies who might be said to be competitors of the company or companies referenced in this document. As a result both Hybridan LLP and the individual members, officers and/or employees who prepared this document may have responsibilities that conflict with the interests of the persons who receive this document. Hybridan LLP and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.

In the United Kingdom, this document is directed at and is for distribution only to persons who (i) fall within article 19(5) (persons who have professional experience in matters relating to investments) or article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (SI 2005/1529) (as amended) or (ii) persons who are each a professional client or eligible counterparty (as those terms are defined in the Financial Conduct Authority’s Conduct of Business Sourcebook) of Hybridan LLP (all such persons referred to in (i) and (ii) together being referred to as relevant persons). This document must not be acted on or relied up on by persons who are not relevant persons. For the purposes of clarity, this document is not intended for and should not be relied upon by any person who would be classified as a retail client under the Financial Conduct Authority’s Conduct of Business Sourcebook.

Neither this document, nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of territorial and/or extra-territorial securities laws, whether in the United Kingdom, the United States or any other jurisdiction in any part of the world.

Where possible this document is made available to all relevant recipients at the same time. Dissemination of research by Hybridan LLP is monitored to ensure that it is only provided to relevant persons. Research prepared by Hybridan LLP is not intended to be received and/or used by any person who is a retail client.

Hybridan LLP and/or its associated undertakings may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Hybridan LLP that is not reflected in this material and Hybridan LLP may have acted upon or used the information prior to or immediately following its publication. In addition, Hybridan LLP, the members, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests.

This document may not be copied, redistributed, resent, forwarded, disclosed or duplicated in any form or by any means, whether in whole or in part other than with the prior written consent of Hybridan LLP.

MIFID II status of Hybridan LLP research
The cost of production of our corporate research is met by retainers from our corporate broking clients. In addition, from time to time we issue further communications as market commentary (such as our daily newsletter, Small Cap Breakfast), which we consider to constitute a minor non-monetary benefit which is capable of enhancing the quality of service provided by Hybridan LLP and which is of a scale and nature which could not be judged to impair the duty of Hybridan LLP to act in the best interest of its client falling within article 24(7)(b) of the MIFID II Regulation.

Hybridan LLP is a limited liability partnership registered in England and Wales, registered number OC325178, and is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. Any reference to a partner in relation to Hybridan LLP is to a member of Hybridan LLP or an employee with equivalent standing and qualifications. A list of the members of Hybridan LLP is available for inspection at the registered office, 2 Jardine House, The Harrovian Business Village, Bessborough Road, Harrow, Middlesex HA1 3EX.

If you would like to unsubscribe, please email enquiries@hybridan.com with “unsubscribe me”.